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# Simplifying Invoice Coding for Property Management Without Advanced Systems

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Chapter 1: Introduction to Invoice Coding

When the fiscal year comes to a close, the challenge of reconciling financial statements begins, and that's where things get interesting. If you utilize sophisticated systems, fantastic! However, for those who do not, managing various transactions and sometimes requesting statements from contractors to ensure all invoices are documented can be daunting. If accruals aren't accurately calculated, the process can become even more overwhelming. But fear not, there are straightforward methods to streamline your tasks.

For today's discussion, I'll focus on one approach that can ease your property management responsibilities. If you're curious about additional strategies, feel free to reach out for more.

Section 1.1: The Challenge of Approving Invoices

Approving invoices is often one of the most monotonous daily tasks in property management. In my experience of over seven years in the industry, I can confidently say that there hasn't been a single day without invoices needing approval.

Ideally, you should not be coding and approving invoices for properties you oversee until they are forwarded to accounts payable for processing in the next payment cycle. There should be a separate individual to handle the coding, as having more than one person review is generally more effective. Nonetheless, it's crucial that everyone involved shares the same objective.

Section 1.2: The Reality of Invoice Management

In reality, many individuals work in environments without sophisticated systems. Even when such systems are available, some clients may opt not to invest in them. Personally, I've had to code and approve invoices for a service provider responsible for common areas in the FRI units I managed for my primary client.

This experience highlighted the significance of meticulously coded invoices, which greatly simplified my reconciliation of service charge accounts.

Chapter 2: A Simple 5-Step Coding Process

To effectively code invoices, you can follow a straightforward five-step approach. It’s essential that anyone reviewing the invoice understands the following key details: the property it pertains to, the contractor's reference, the responsible party for payment, and the description to use when entering the invoice into the system.

To complete this five-step process, include the following on the invoice:

  1. Property Reference
  2. Contractor Reference
  3. Payment Responsibility and Apportionment
  4. Description of the Invoice
  5. Your Initials and the Date of Coding & Approval

The first two items will align with the property management systems utilized by your company.

For example, it might look something like this:

  1. CanaryIsland234
  2. LandscapersV122
  3. Service Charge — Schedule 1 100%
  4. March 2022 — Landscaping
  5. ZK 09.03.2022

Alternatively:

  1. CanaryIsland234
  2. LandscapersV122
  3. Float233y5y — CLIENT 100%
  4. March 2022 — Landscaping
  5. ZK 09.03.2022

A crucial tip: avoid vague descriptions like "various works." This can lead to confusion and issues down the line. If the invoice covers multiple tasks, reference the most significant job and append "and other works." For example, "Electrical and other works" or "Roof repairs and other works." If space permits, you may also want to include the invoice or quote number, although ideally, those entering the invoice should handle this correctly.

For more insights, check out the video "Create an Invoice Coding Rule - YouTube," which provides further guidance on establishing coding rules to enhance your invoicing process.

Additionally, the video "Coding an Invoice - YouTube" elaborates on practical coding techniques that can simplify your invoicing tasks.

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